group health insurance 10-4-2011. do now… emily participates in her companys group medical...
TRANSCRIPT
![Page 1: GROUP HEALTH INSURANCE 10-4-2011. DO NOW… Emily participates in her companys group medical insurance plan. The annual cost of Emilys plan is $2,500 per](https://reader035.vdocuments.net/reader035/viewer/2022070306/551684ec550346a2698b5f71/html5/thumbnails/1.jpg)
GROUP HEALTH INSURANCE
10-4-2011
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DO NOW…
Emily participates in her company’s group medical insurance plan. The annual cost of Emily’s plan is $2,500 per year. If the company pays 65% of the annual cost, how much is deducted from her biweekly paycheck to cover her portion?
![Page 3: GROUP HEALTH INSURANCE 10-4-2011. DO NOW… Emily participates in her companys group medical insurance plan. The annual cost of Emilys plan is $2,500 per](https://reader035.vdocuments.net/reader035/viewer/2022070306/551684ec550346a2698b5f71/html5/thumbnails/3.jpg)
Computing Group Insurance Deductions
1. Find the percent paid by Emily:100% - 65% = 35%
2. Find the annual amount paid by Emily:$2,500 X 35% = $2,500 X .35 = $875
3. Find the deduction per pay period:$875 26 = $33.65 deduction per pay
period
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Group Health Insurance
• Health Insurance: Covers the cost of health care• An individual can purchase health insurance to
provide protection against the costs of various types of illnesses or accidents.
• Most employers provide some type of health insurance coverage• A company may receive cheaper rates than an
individual because it can provide coverage for its workers under group plans available through many insurance companies
• Some companies pay a portion of the premiums, some pay all of the premiums, while others don’t pay any of the premiums
• Premium: payment to the insurance company for the purchase on an insurance policy
![Page 5: GROUP HEALTH INSURANCE 10-4-2011. DO NOW… Emily participates in her companys group medical insurance plan. The annual cost of Emilys plan is $2,500 per](https://reader035.vdocuments.net/reader035/viewer/2022070306/551684ec550346a2698b5f71/html5/thumbnails/5.jpg)
Computing Group Health Insurance Deductions
1. Find the percent paid by the employee
2. Find the annual amount paid by the employee
3. Deduction per Pay Period =Total Annual Amount Paid by Employee
Number of Pay Periods per Year
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Let’s Practice…
Jack participates in his company’s medical insurance plan. The plan has an annual cost of $3,975. The company pays 70%. If Jack is paid biweekly, what is his insurance cost per paycheck?
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1. Find the percent paid by Jack:
100% - 70% = 30%2. Find the annual amount paid by Jack:
$3,975 X 30% = $3,975 X .30 = $1192.50
3. Find the deduction per pay period:
$1192.50 26 =
Let’s Practice…
$45.87 deduction per pay period
![Page 8: GROUP HEALTH INSURANCE 10-4-2011. DO NOW… Emily participates in her companys group medical insurance plan. The annual cost of Emilys plan is $2,500 per](https://reader035.vdocuments.net/reader035/viewer/2022070306/551684ec550346a2698b5f71/html5/thumbnails/8.jpg)
One More Time…
Melissa earns $1,970 per month. Her family insurance plan costs $4,450 per year. Her employer pays 66% of the cost. If this is her only deduction, how much is her monthly paycheck after the medical insurance deduction?
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1. Find the percent paid by Melissa:
100% - 66% = 34%2. Find the annual amount paid by
Melissa:
$4,450 X 34% = $4,450 X .34 = $405.45
3. Find the deduction per pay period:
$405.45 12 =
One More Time…
$33.79 deduction per pay period
$1,970 - $33.79 = $1936.21
4. Find the monthly paycheck after the insurance deduction :
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1. Find the percent paid by Melissa:
100% - 66% = 34%2. Find the annual amount paid by
Melissa:
$4,450 X 34% = $4,450 X .34 = $1513.00
3. Find the deduction per pay period:
$1513.00 12 =
One More Time…
$126.08 per pay period
$1,970 - $126.08 = $1843.92
4. Find the monthly paycheck after the insurance deduction :
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Your Turn…•Get your workbooks
•Turn to Sections 2-5 on Page 10
•Complete questions 1-7